JAIIB · Principles & Practices of Banking · Module A — General Banking Operations
JAIIB PPB Unit 9 — Operational Aspects of NRI Business: Free MCQs with Explanations
By Swarnakshi Jha (ex-banker) · Updated 20 September 2026 · Paper 2 of the November 2026 cycle (22 November 2026)
This page is a free slice of our JAIIB PPB question bank for Unit 9 — Operational Aspects of NRI Business (Module A — General Banking Operations). The Mock Centre holds 53 questions on this unit alone, every one with a why-right / why-wrong explanation; below are the facts examiners keep returning to, five of those questions to try, and the traps that cost marks.
PPB · Module A53 MCQs in the Mock Centre5 free belowPaper on 22 November 2026
Key facts examiners test from this unit
NRE: NRIs/PIOs, rupee, fully repatriable, tax-exempt, SB/CA/RD/FD (FD min 1 YEAR), joint with resident relative only 'FORMER OR SURVIVOR'; rates ≤ domestic, no staff/senior add-ons; pledged NRE deposit — no premature withdrawal.
Resident PoA on NRE: CAN do local payments, investments, remit to the holder; CANNOT open the account, repatriate to others, gift to residents, or transfer to another NRE.
FCNR(B): designated foreign currencies, TERM only 1–5 years (no RD), exchange risk on the BANK, floating reset 6 months, 360-day base, ceilings ARR+250/+350 bps (FBIL benchmarks; 400/500 relaxation expired 31 Mar 2025), renewal within 14 days.
5 free practice questions — tap an option
Five basic questions from this unit. Answers lock on the first tap, exactly as in the exam, and a short explanation opens underneath. The Mock Centre adds the moderate and tough questions, why every other option is wrong, the concept capsule and the exam tip — with your score and revision dates tracked.
Question 1 of 5
An NRE account can be maintained by:
Why (b): An NRE (Non-Resident External) account can be maintained by NRIs AND PIOs — the rupee gateway for the Indian diaspora's foreign earnings.
Question 2 of 5
An NRE account is held in which currency, with what repatriation?
Why (b): An NRE account is held in INDIAN RUPEES and is FULLY REPATRIABLE — principal and interest can travel abroad freely; the currency is rupee, the door is open.
Question 3 of 5
In FCNR(B), the exchange (currency) risk is borne by:
Why (b): In FCNR(B) the exchange risk is borne by the BANK — the deposit stays in foreign currency, so any rupee depreciation is the bank's problem, not the depositor's.
Question 4 of 5
Which accounts are FULLY repatriable AND tax-exempt?
Why (b): The privileged pair — NRE and FCNR(B) — are both FULLY REPATRIABLE and TAX-EXEMPT; NRO is taxed and restricted, and SNRR pays no interest at all.
Question 5 of 5
The portfolio-investment ceiling for an INDIVIDUAL NRI/OCI in a listed Indian company is:
Why (a): The portfolio-investment ceiling for a SINGLE NRI/OCI in a listed company is 5% of paid-up capital — the individual rung of the 5/10/24 ladder.
0 of 5 answered.
Traps in this unit
Confusable A
Confusable B
The difference
NRE joint with resident
Resident joint with NRI
FORMER or survivor vs EITHER or survivor
NRE TD minimum 1 year
NRO TD minimum 7 days
The two minimum tenors
Practise all 53 questions on Unit 9. The free demo opens a slice of every subject with the same explanations; the PPB Online-only pass unlocks all 3,280 PPB questions, the full and module mocks, Smart Revision and the Readiness Score for one year (₹1,299). Not sure where you stand? Take the free 10-question test first.
Independent study aid — not affiliated with, endorsed by, or sponsored by the Indian Institute of Banking & Finance (IIBF). Exam pattern, dates, fees and passing criteria are set by IIBF — always confirm the current rules at iibf.org.in. Regulatory figures verified as of September 2026; verify from official sources before relying on them in practice.
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